Submitted by Bill Schrimpf
Signs, billboards, Reno Neon Line District. Plenty of ink has been spilled on these hot-button topics. Although related, this topic is new to these existing conversations: Monopolistic business practices that create a significant barrier to entry to the Neon Line District.
Reno Neon Line is trademarked by a private entity, not the City. The trademark means if I would like to open a business in the Reno Neon Line District and call it “Bill’s Neon Line Ice Cream,” it would be a trademark violation and likely greeted with a cease and desist letter from the big neighbor. If an existing business, such as my favorite pizza or burrito place in the Neon Line District, advertised “best pizza / best burrito located in Reno Neon Line District,” the advertisements likely would be a trademark violation, too.
Compare that to “Bill’s MidTown Ice Cream.” Big and small neighbors would probably be welcoming and stop by for an ice cream cone.
The City created the Reno Neon Line District on October 27, 2021, by ordinance. Even then, one company owned all naming and advertising rights to the Reno Neon Line District because trademark registration goes back to 2018. I give the City Council the benefit of the doubt; they did not realize the problem. Until this week, at least some Council members were unaware of the trademark, as was I, and likely you too.
Owning a monopoly on the naming and marketing of a District intended by the City to include multiple owners, ranging from housing to grocery to retail, to dining to special events, is bad for Reno. The trademark has yet to be defended in court. The trademark owner has spent years filing paperwork to keep the trademark current. Businesses usually don’t walk away from their intellectual property. What if an existing, smaller casino in the area was renamed to “Reno Neon Line District Casino”?
Unfortunately, our Reno City Council still actively supports this monopoly on all naming rights by appealing a recent District Court ruling.
About a year ago, around the same time the District was created, the City approved three permits to put up “place-making” or “area identification” signs. Someone sued almost right away, saying the signs were a violation of various sign and billboard laws. Last month, a District Court agreed that two of the three signs were, in fact, a violation because they would be too far away from the District. Although I have not read every piece of evidence submitted to the Court, the Court did not mention the existence of a trademark in its decision last month; perhaps it needed to be made aware, too.
In this week’s City Council meeting, the Council decided to appeal the District Court ruling prohibiting two of the three signs. The logic used by the City Council this week is that the Court overstepped its authority and might set a legal precedent, hamstring the City’s authority in some future unknown case. On that narrow topic, I agree. Certain mechanisms give the City the authority to color outside the lines for the betterment of the City. However, those mechanisms do not and should not apply to the betterment of a single business entity.
As a practical matter, if the City is successful in its appeal, prepare for two more signs that support monopolistic business practices. The original City logic revolved around place-making and area identification. All three signs more closely resemble commercial advertising than area identification because of the trademark. The actual and real monopoly is a more pressing matter than the very narrow legal precedent the City is concerned about.
Hopefully, the party that sued to stop the signs will appeal, too, to test the monopoly angle on the one sign that was allowed by the Court.
The best outcome for Reno today and 20 years on would be to squash the trademark and kill the naming and marketing monopoly if it’s not too late.
Reno Neon Line District exists and will continue to do so. This question is about naming and advertising rights in the District. Do those rights belong to “us” or to the developer?
Bill Schrimpf is a local, born and raised in Reno. He actively works with elected representatives, offering new points of view while striving for polite and professional public discourse. Bill volunteers on the Ward 1 Neighbor Advisory Board. He attends and comments regularly at City Council meetings. Professionally, Bill is an IT Director working in the “cloud” and is a licensed Real Estate Agent. Bill’s favorite thing about Reno is being outside, enjoying our 300 days of sunshine.
